Cost Accounting MCQ
What Is Cost Accounting?
Cost accounting is a method of managerial accounting which aims to capture the total production cost of a business by measuring the variable costs of each production phase as well as fixed costs, such as a lease expense.
Examples include rent, depreciation, interest on loans and lease expenses. Direct, indirect, fixed, and variable are the 4 main kinds of cost. In addition to this, you might also want to look into operating costs, opportunity costs, sunk costs, and controllable costs.
101. The base of abc analysis of inventory control is
a) Usage
b) Value
c) Out put
Answer:- b
102. In deciding the eoq the cost of inventory should be
a) Minimum
b) Optimum
c) Maximum
Answer:- a
103. ………….. Is prepared only after the purchase requisition is obtained
a) Material requisition
b) Purchase order
c) Bin card
Answer:- b
104. ……………. Will lead to unnecessary blocking of working capital
a) Over stocking
b) Under stocking
c) Minimum stocking
Answer:- a
105. ……………………. Is an authorization to the store keeper to issue raw material
a) Purchase order
b) Purchase requisition
c) Material requisition note
Answer:- c
106. ………………….. Is the second major element of cost
a) Labour
b) Material
c) Over head
Answer:- a
107. In which of the following method of wage payment , wages on time basis are not guaranteed
a) Halsey plan
b) Rowan plan
c) Taylors differential piece rate system
Answer:- c
108. Which of the following method of wage payment is most suitable where quality and accuracy of work of primary importance
a) Piece rate system
b) Time rate system
c) Halsey plan
Answer:- b
109. The time worked by a worker is prepared by
a) Time keeping dept.
b) Personal dept.
c) Payroll dept.
Answer:- a
110. Preventive cost and ……………… are two types of labour turn over
a) Ordering cost
b) Replacement cost
c) Carrying cost
Answer:- b
